China's Lenovo Group, the world's biggest maker of personal computers, said net income jumped 23 percent in the first fiscal quarter, beating estimates, as it consolidated its position in the PC market while boosting smartphone shipments.
Net income rose to $214 million in the three months through June from $174 million in the same period a year earlier. That was ahead of estimates of $202 million, according to a Thomson Reuters SmartEstimate poll of analysts.
The ambitious Beijing-based hardware company has agreed acquisitions worth over $5 billion this year alone, buying server and handset businesses in what it calls its "PC Plus" strategy to diversify away from the shrinking PC market.
Over the past year it has displaced South Korean giant Samsung Electronics to become the No. 1 smartphone seller in China, according to recent estimates by IDC.
For the first quarter, Lenovo reported 39 percent growth in worldwide handset shipments, helped by strong sales in China. Revenue for the quarter rose 18 percent to $10.4 billion, with significant gains coming in Europe.